A huge sell order flash crashed Bitcoin’s price to $51K on bitstamp as the cryptocurrency is going back up again so let’s read more in our Bitcoin news and analysis today.
Bitcoin reached a new high during the Monday morning Asian trading session and at the time of writing, the asset was still close to levels at $56,700. Bitcoin posted its third weekly green candle and fourth on the daily time frame. The asset gained a huge 17% uptick over the past week and 31% in the past day. However, there was a slight discrepancy on the popular trading venue as pointed out by trader “Hsaka” which was a flash crash that was initiated by a huge sell order that happened on Bitstamp. The prices plummeted to around $51K on the platform after a huge spot sale but the markets were not affected elsewhere.
What kind of neanderthal market sells $40m spot on Bitstamp. pic.twitter.com/UiWTnbF9dg
— Hsaka (@HsakaTrades) October 10, 2021
The flash crash is described as an event in which the price of the asset drops right away by a huge percentage and spikes back immediately. This is what transpired on the exchange a few hours ago. BTC stood around $55,500 before it dropped to $51,000 as the charts show. It bounced off just as fast and the TradingView volume data shows that there were 212 BTCs being sold at the minute which is most likely what caused the drop. It’s worth noting that this is not an isolated incident in the crypto space. The reports showed a few examples in the past where the price of BTC jumped by double-digit percentages in a few seconds. Also, there were some alternative coins that were affected. For example, the DOT/USD quarterly perpetual futures contract on the COIN margined section of Binance Futures went through a flash crash as the price dipped from $33.862 to a low of $0.20 in moments.
As recently reported, Following the price slide from a day ago below $54,000 started increasing in value once more and neared $56,000 but some altcoins like XRP and DOT charted some gains in the past day with Bitcoin’s dominance also increasing. The main cryptocurrency exploded above $50,000 and hasn’t looked back ever since. But the opposite happened, it has been mainly on the offensive and resulted in tapping $56,000 a few days ago for the first time in five months. Breaking another level turned out to be even more challenging than expected as the bears intercepted the move and pushed BTC south so as a result, BTC dipped a few thousand of dollars below $54,000.
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